The bill proposes amendments to the General Laws in Chapter 44-18, specifically Sections 44-18-7.1 and 44-18-30, which govern sales and use taxes. It introduces new definitions and clarifies existing terms to provide more precise guidelines for taxability. Notable changes include the expanded definition of "alcoholic beverages" to include beer and malt beverages, the detailed explanation of "bundled transactions," and the specifications of what constitutes "distinct and identifiable products." The bill also defines various terms related to clothing, computers, drugs, and digital products, such as "computer software," "delivered electronically," and "over-the-counter drugs," which are crucial for determining the taxability of different types of products and transactions. Additionally, the bill defines "durable medical equipment," "food and food ingredients," and "prepared food," among others, and provides criteria for tax exemptions on certain items like newspapers and sales to charitable organizations. There are no deletions indicated in the provided text.

The bill also addresses the taxation of telecommunications and digital products by defining "telecommunications service," "ancillary services," and "specified digital products," and it outlines the tax base and exemptions for these services. It includes an insertion regarding gross receipts exempt from sales and use taxes, such as tangible personal property that the state is constitutionally prohibited from taxing and sales to nonprofit organizations. The bill further specifies exemptions for gasoline and airplane fuels, purchases for manufacturing, food and food ingredients, medicines and drugs sold on prescription, and motor vehicles sold to nonresidents, among others. It also provides tax exemptions for the sale of special adaptations for motor vehicles for persons with disabilities, the trade-in value of motor vehicles, precious metal bullion, commercial vessels, and commercial fishing vessels. Additionally, the bill exempts clothing and footwear up to $250 per item from sales tax and outlines exemptions for various other items and services, including those related to agriculture, energy, and health. Notably, the bill includes a deletion, removing the exemption for beer and malt beverages from the sales tax exemption for alcoholic beverages purchased by a Class A licensee, and it exempts breast pump collection and storage supplies, with certain exclusions.